BAKU, Azerbaijan, Feb.10
By Leman Zeynalova – Trend:
The value of oil and gas contracts has increased by 77 percent in the fourth quarter of 2021 as compared to Q3, Trend reports with reference to GlobalData.
However, the company recorded a 14 percent decrease in the number of contracts in the oil and gas industry during the reporting period.
Pritam Kad, Oil & Gas Analyst at GlobalData pointed out that notable contracts that made significant contributions in terms of value include Saudi Aramco’s 16 contracts, with a combined worth of $10 billion for the subsurface and Engineering, Procurement, and Construction (EPC) works for the development of the Jafurah shale gas field in Saudi Arabia. Moreover, rising crude oil prices and improved margins helped to gain further momentum for contracts activity, he added.
The GlobalData report shows that although the number of contracts declined from 1,608 in Q3 2021 to 1,383 in Q4, overall contract value increased substantially from $34.32 billion in Q3 to $60.84 billion in Q4.
In terms of single scopes, operation and maintenance (O&M) represented 48 percent of the total contracts in Q4 2021, followed by procurement with 19 percent, and contracts with multiple scopes, such as construction, design and engineering, installation, O&M, and procurement accounted for 17 percent.
Other notable contracts include Yinson Holdings’ subsidiaries two contracts with Petrobras for the charter, and operation and maintenance services for the Integrado Parque das Baleias (IPB) Floating, Production, Storage, and Offloading (FPSO) vessel operating in the North Campos Basin, offshore Brazil, and ADNOC Drilling’s five-year drilling services agreement worth $3.8 billion with ADNOC Onshore for the provision of drilling, workover, and other well services in the United Arab Emirates.
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